Highlights of the news release:
• HREE-S Zone extended over 200 m (East-West) by 100 m vertical and still open at depth
• Preliminary interpretation of a 2nd enrichment zone in the North-west wall rock of the Core Zone
• Dysprosium enrichment of over 400% compared to the Core Zone
• Heavy rare earth enrichment in fluoro-carbonate minerals
Montreal, January 29, 2014 – Geomega Resources Inc. (“GéoMégA” or the “Company”) (TSX.V: GMA) is pleased to announce the complete results of the Phase 3 diamond drilling (“Phase 3”) on its rare earth elements (“REE”) project Montviel in Quebec. Located in the south wall rock of the Core Zone, the heavy REE zone (“HREE-S Zone”) was intersected by five (5) drill holes over 350 m (East-West) by 20 m (North-South) by 230 vertical and still open in depth. The heavy REE minerals are fluoro-carbonates similar to those found in the Core Zone.
“The 3D modeling and the mineralogical and geochemical characterization, realized in collaboration with the “Université du Québec à Montréal”, have allowed a precise geological interpretation of the HREE-S Zone. Also with these works, a new heavy REE zone, located in the North-west wall rock of the Core Zone, is taking form (CLICK HERE). The width of the HREE-S Zone and the preliminary interpretation of a 2nd zone confirm the excellent potential of the Montviel carbonatite to contain heavy REE enrichment.” comments Alain Cayer, Vice-President Exploration of GéoMégA.
|
Phase 3 Highlights – (Diamond Drilling of 2,058 metres) |
|||||||||
|
Hole |
Section/Dip/ Azimuth |
From |
To |
Core Length(1) |
TREO(2) |
Dysprosium oxide |
Neodymium oxide |
Europium oxide |
Terbium oxide |
|
(m) |
(m) |
(m) |
(%) |
ppm |
ppm |
ppm |
ppm |
||
|
77 |
7+25W/ 1500/ -450 |
172.5 |
181.85 |
9.35 |
1.13% |
101 |
2,389 |
103 |
28 |
|
196.6 |
205.1 |
8.50 |
0.85% |
118 |
1,606 |
85 |
30 |
||
|
78 |
6+35W/ 1500/ -450 |
180.0 |
207.35 |
27.35 |
1.43% |
170 |
2,495 |
118 |
40 |
|
Inc. 183.0 |
190.5 |
7.50 |
2.38% |
384 |
4,667 |
242 |
90 |
||
|
Inc. 183.0 |
184.5 |
1.50 |
1.13% |
830 |
1,662 |
230 |
172 |
||
|
79 |
5+45W/ 1500/ -450 |
231.0 |
243.0 |
12.00 |
1.85% |
101 |
2,896 |
129 |
25 |
|
81 |
8+15W/ 1500/ -450 |
186.0 |
208.5 |
22.50 |
0.69% |
105 |
1,388 |
77 |
24 |
|
83 |
7+70W/ 1500/ -450 |
240.0 |
253.5 |
13.50 |
0.76% |
112 |
1,595 |
87 |
28 |
|
259.5 |
267.0 |
7.50 |
0.66% |
112 |
1,610 |
75 |
28 |
||
|
282.0 |
300.0 |
18.00 |
0.55% |
100 |
1,190 |
74 |
25 |
||
|
1. True width is estimated between 60 to 75% based on structural interpretation of the HREE-S Zone. |
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|
2. Cerium, Lanthanum, Neodymium, Praseodymium are the most abundant rare earth oxides. |
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|
3. 0.1% = 1 kg/ton ; 1 ppm = 1 gram/ton |
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Drill holes MVL-13-80 and MVL-13-82 completed Phase 3 and defined the east and west extremities of the HREE-S Zone. The new geological interpretation will be available on the Company’s website in the upcoming days.
Global market for permanent magnets to reach $US 22.9 billion by 2018
Currently, the most critical REE are neodymium (Nd) and dysprosium (Dy) due to the growing demand for high-performance permanent magnets. Global market projections indicate a high growth rate of 8.7% annualized over the next five (5) years and a value of $US 22.9 billion in 2018 ($US 13.9 billion in 2012)[1].
Physical separation technology of REE – “neighbour” elements
The Company expects that the results of the next series of separation tests to isolate “neighbour” REE such as neodymium (Nd) vs. praseodymium (Pr) and dysprosium (Dy) vs. terbium (Tb) will be available and disclosed around the end of February.
Technology Agreement
On January 27, 2014, the TSX Venture Exchange has conditionally approved the Technology Agreement between Dr. Pouya Hajiani (“Hajiani”) and the Company. Under the terms of the Technology Agreement, the Company issues 1,000,000 common share purchase warrants (“Warrants”) to Hajiani in exchange for all rights, title and interest in two (2) patents related to the physical separation technology. The Warrants become exercisable upon demonstration of high purity (>99%) separation, in a pilot plant using the separation technology, of the following REE from the Montviel concentrate: neodymium (Nd), dysprosium (Dy), europium (Eu) and praseodymium (Pr). Each Warrant entitles Hajiani to subscribe to one common share at an exercise price of $0.15 expiring July 1, 2018.
NI 43‐101 Disclosure
Alain Cayer, P. Geo., MSc., Vice-President Exploration, is the Qualified Person under NI 43-101 guidelines who supervised and approved the preparation of the technical information in this news release.
ALS Global conducted all analyses in their Vancouver laboratory. The analyses were done on every sample using lithium metaborate fusion, followed by ICP analysis and completed by mass spectrometry. Specific XRF assays were conducted on niobium. Quality control and assurance were done by systematically using REE standards, blanks and duplicates.
Total Rare Earth Oxides (“TREO”) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3.
Heavy REE are Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu plus Y.
About GéoMégA (www.geomega.ca)
GéoMégA, which owns 100% of the Montviel rare earth elements/niobium project located in Québec, is a mineral exploration and development company focused on the discovery and sustainable development of economic deposits of metals, such as rare earth elements, niobium and graphite, in Québec. GéoMégA is committed to meeting Canadian mining industry standards and distinguishing itself with its innovative engineering, stakeholders engagement and its dedication to local transformation benefits.
GéoMégA currently has 42,825,238 common shares issued and outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Simon Britt
President and CEO
GéoMégA
(450) 465-0099
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company’s filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.